Character House Entertainment: The Moana Character Expansion
(5 pages of text)
Character House Entertainment was a small entertainment company in the Greater Toronto Area that provided Disney and cartoon-character performances for children’s birthday parties and corporate events. The company's customizable services featured musical performances, meet-and-greets, games, dances, stuffed animals, and cotton candy. In April 2017, the company’s founder and chief executive officer anticipated an influx in demand for a recently released movie that had achieved worldwide success and critical acclaim. She wanted to offer this new theme in the company's event options in order to contend with competitors and stay current with customers. In addition to customer and competitor indicators, she wanted to assess the return the company could expect if it expanded into offering those characters.
This case is appropriate for an introductory course in managerial accounting or a course in entrepreneurial finance at the undergraduate university level. Working through this case will give students the opportunity to do the following:
- Use the differential cash flow model to evaluate two expansion alternatives.
- Conduct a financial analysis of the two alternative expansion opportunities using contribution analysis.
- Make a decision with both qualitative and quantitative considerations.
Arts, Entertainment, Sports and Recreation
Canada, Small, 2017
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